Bitcoin's Narrative as a Store of Value Gathers Momentum as Countries Reduce USD Allocation of their FX Reserves

FX Reserves Allocated to USD-Assets have Fallen by 5% Since 2018

Mr. Hansen was responding to another Tweet that elaborated on the shift by countries worldwide away from the US dollar as a reserve currency. The analysis pointed out that according to J.P Morgan, the proportion of foreign reserves allocated to USD assets had declined by 5% since 2018. Additionally, after the COVID19 pandemic, the US dollar’s share of foreign reserves fell to an all-time low of less than 59%.

Israel Adds the Chinese Yuan/Renminbi to its Reserves

One country that has reduced its holdings of the USD in its reserves is Israel. According to a report by Bloomberg, last year, Israel’s Central Bank added the Chinese Yuan/Renminbi alongside other three currencies to its reserves to the tune of $200 billion. Furthermore, beginning this year,’ the currency mix will expand from the trio of the U.S. dollar, the euro and the British pound to include the Canadian and Australian dollars as well as the yen and the yuan, which is also known as the renminbi.’

Bloomberg visualized the new mix of Israel’s Central Bank foreign currency reserve through the following chart.

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